financing past 10 mortgages

13 Replies

has anyone found a way to tap into their equity in a rental? I have a significant amount of equity I'd like to borrow against to flip properties but I haven't been able to find a bank that will give me a HELOC on a investment property! very frustrating. I've hit the 10 mortgage limit and am now stuck at how to keep growing.

Yep, it's possible, but you'll have to dig to find a bank who will do it, most likely. One of the challenges when you get to the point that you are at, is becoming independent, but also your ability to maintain your DTI ratio so that a bank will still loan to you. If you can't keep your DTI in check, you'd have to resort to private money. Best of luck!

You have 3 main options assuming you want to keep growing.

1. Pay off one or more conventional mortgages and then just keeping that

2. Find a portfolio lender. Call local banks. Everyone says it, really all you have to do. The terms can vary a lot though and sometimes aren’t so great.

3. Commercial property.

I think your best bet will be a portfolio lender. Most will request that all assets be in an LLC; however, all ten loans would come off your credit and become a business purpose loan. Very helpful when wanting to access untapped equity and reduce DTI.

Years ago I had 6 individual mortgage loans. The S&L said no more

 I took my list of houses to a local bank and they gave me a line of credit. It paid off the six loans and cash to by a few more. 

But that was in 2004. They did a drive by appraisal(realtor opinion) and that was it.  Not so easy these days. 

thanks for everyone's input! I suppose I should start asking for portfolio loans versus HELOCs. @Lane Kawaoka MFH just seems so much more intimidating. I'm comfortable with SFH but I really should consider stepping outside of my comfort zone if I want to keep growing my business! I'm assuming you mean 5+ units?

Check the Get Rich Education Podcast, there is a lender that frequents the show named "Chalee" something (that is 100% spelled incorrectly).  She writes 30 years fixed in nearly every state for properties past 10.  Obviously the terms aren't as good as Fannie/Freddie, but it is still better than most terms that I have heard of.  Off the top of my head, I think that it is "Ridge" lending.

@David Sanford Small MF (below 50 units) isn't very daunting. You shouldn't have too much trouble getting loans for 5-10 unit properties (even though they are considered commercial). Call every lender, bank and broker in your area. 

The key is to be organized (investment package), properly present your case (solid underwriting) and persistent.

@David Sanford I thought the same thing. But as soon as you move up the more your learn. It took me three years to make the transition but so glad I did. 

Since this thread is being tagged from a more recent thread, I am going to update it with related information.  Caeli Ridge is the person mentioned above.  We have used her for our properties.  It helps to have the name spelled correctly in order to find her. Ridge Lending